the recent rise in inflation has led to higher nominal interest rates. according to the fisher effect, what happens to the real interest rate. a. it increases. b. it decreases. c. it remains the same. d. it fluctuates
Added by Joseph Z.
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The Fisher Effect states that the real interest rate is equal to the nominal interest rate minus the inflation rate. This means that if inflation rises, nominal interest rates will also rise, but the real interest rate may change depending on the relationship Show more…
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